The New CFO Financial Leadership Manual

by Bragg, Steven M.

• ISBN13: 9780470082003
• ISBN10: 0470082003
• Edition: 2nd
• Format: Hardcover
• Copyright: 2007-02-02
• Publisher: Wiley

Summary

Filled with pragmatic insights, proactive strategies, and best practices, The New CFO Financial Leadership Manual, Second Edition is destined to become your essential desktop companion. This thorough guidebook is essential reading for the CFO requiring an overview of strategies, measurement and control systems, financial analysis tools, funding sources, and management improvement tips.

Author Biography

STEVEN M. BRAGG, CPA, CMA, CIA, CPM, CPIM, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master's degree in finance from Bentley College, an MBA from Babson College, and a bachelor's degree in economics from the University of Maine. He has also written or cowritten the following books, also from Wiley: Accounting and Finance for Your Small Business, Accounting Best Practices, The Ultimate Accountants' Reference, Controllership, Cost Accounting, Financial Analysis, Just-in-Time Accounting, Managing Explosive Corporate Growth, Outsourcing, Sales and Operations for Your Small Business, and The Controller's Function.

Table of Contents

Preface

Acknowledgments

About the Author

Overview

CFO's Place in the Corporation

First Days in the Position

Specific CFO Responsibilities

Overview of the Change Management Process

Differences between the Controller and CFO Positions

Relationship of the Controller to the CFO

Summary

Financial Strategy

Cash

Investments

Working Capital

Inventory: Inventory Reduction Decision

Fixed Assets: Lease versus Buy Decision

Payables

Debt

Equity

Fixed Expenses: Step Costing Decision

Payroll Expenses: Temporary Labor versus Permanent Staffing Decision

Entities: Divestiture Decision

Systems: When to Use Throughput Costing

High-Volume, Low-Price Sale Decision Using Throughput Costing

Capital Budgeting Decision Using Throughput Costing

Make versus Buy Decision Using Throughput Costing

Summary

Tax Strategy

Accumulated Earnings Tax

Cash Method of Accounting

Inventory Valuation

Mergers and Acquisitions

Net Operating Loss Carryforwards

Nexus

Project Costing

S Corporation

Sales and Use Taxes

Transfer Pricing

Unemployment Taxes

Summary

Information Technology Strategy

Reasons for Devising an Information Technology Strategy

Developing the Information Technology Strategy

Technical Strategies

Specific Applications

Summary

Accounting

Performance Measurement Systems

Creating a Performance Measurement System

Asset Utilization Measurements

Operating Performance Measurements

Cash-Flow Measurements

Liquidity Measurements

Solvency Measurements

Return on Investment Measurements

Market Performance Measurements

Quality of Earnings Ratio

Summary

Control Systems

Need for Control Systems

Types of Fraud

Key Controls

When to Eliminate Controls

Summary

Audit Function

Composition of the Audit Committee

Role of the Audit Committee

Purpose of the External Auditors

Dealing with External Auditors

Impact of the Sarbanes-Oxley Act on the Audit Function

Role of the Internal Audit Function

Managing the Internal Audit Function

Summary

Reports to the Securities and Exchange Commission

Overview

Securities Act of 1933

Securities Exchange Act of 1934

Regulation S-X

Regulation S-K

Regulation S-B

Regulation FD

SEC Forms

EDGAR Filing System

Summary

Financial Analysis

Cost of Capital

Components

Calculating the Cost of Debt

Calculating the Cost of Equity

Calculating the Weighted Cost of Capital

Incremental Cost of Capital

Using the Cost of Capital in Special Situations

Modifying the Cost of Capital to Enhance Shareholder Value

Strategize Cost of Capital Reductions

Summary

Capital Budgeting

Hurdle Rate

Payback Period

Net Present Value

Internal Rate of Return

Problems with the Capital Budget Approval Process

Cash Flow Modeling Issues

Funding Decisions for Research and Development Projects

Capital Investment Proposal Form

Post-Completion Project Analysis

Summary

Other Financial Analysis Topics

Risk Analysis

Capacity Utilization

Breakeven Analysis

Business Cycle Forecasting

Summary

Funding

Cash Management

Cash Forecasting Model

Measuring Cash F

Table of Contents provided by Publisher. All Rights Reserved.